Question
Assume that XYZ Industries had earnings this year of $4 per share and always pays out 40 percent in dividends. Analysts predict that ZZ Top's
Assume that XYZ Industries had earnings this year of $4 per share and always pays out 40 percent in dividends. Analysts predict that ZZ Top's earnings will grow at a 3 percent rate forever. What number would you use for next year's dividend (D1) if you were to use the Dividend Discount Model to price this stock?
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
